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19th January 2005 - Senator Specter (PA), Judiciary Chairman, Backs Asbestos Bill

Senate Judiciary Committee Chairman Arlen Specter (Pennsylvania, Republican) said on Wednesday the 19th of January 2005 he was proposing a $140 billion fund to compensate asbestos victims and cap the liability of companies having to pay the asbestos claimants.  Senator Specter said he will introduce legislation next week to create the fund.

Asbestos, a material widely used for decades in many industries, has been linked to fatal diseases.  Some of the companies linked to asbestos have been forced into bankruptcy by litigation.

If in the future the asbestos fund proves to be insufficient Senator Specter says claimants could possibly retain the right to further litigation.  He did not elaborate on this comment.  Companies, and insurance companies, exposed to asbestos litigation are concerned this loophole could allow future legal/tort abuses and deny them the ability to accurately value asbestos liabilities.

For further information and Senator Specter's 4th January 2005 comments on asbestos reform please visit: Comments

Source: United States Senate